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The Daily

NEWS HIGHLIGHTS FOR MONDAY - 2.29.16

By:
Maya Lindsay
Published Date:
Feb 29, 2016

NYSSCPA Members in the News

Scott Adair (Rochester)
Tax brackets
WROC Rochester News 8
CPA Scott Adair discussed tax brackets as it relates to your filing status Monday on News 8 at Sunrise. Adair said tax brackets determine how much we owe the IRS each year, or how much of a refund we'll receive. In most cases, how much you pay in taxes is related to how much you make each year. Someone who makes $100,000 a year will be in a higher tax bracket than someone who makes $30,000.

Other Accounting and Financial News Stories 

John Petosa (Syracuse)
Why would Donald Trump get audited 12 years in a row?
Yahoo! Finance
There's new heat on Donald Trump over a rather dry topic: his tax returns. Mitt Romney, who has been making the TV news rounds, claimed this week that he expects a "bombshell" in Trump's tax returns, if only the candidate would release them. The odds of getting audited 12 years in a row are slim, but not impossible, experts say. Trump, in turn, raised eyebrows at the Republican presidential debate on Thursday when he said that he can't release his tax returns yet because he is in the midst of an audit.

Everything You Need to Know About Negative Rates
Wall Street Journal
The Bank of Japan, the European Central Bank and several smaller European authorities have ventured into the once-uncharted territory of negative interest rates. But what are negative rates, and how do they come about? Here are some questions and answers. How do central banks work? All are a bit different, but as a rule the central bank is the bank for a country’s (or monetary union’s) banks. Commercial banks have accounts with the central bank, just as households and businesses have accounts with commercial banks.

The Spirit of Accounting
Accounting Today
Although most everyone involved in financial reporting studied economics, we’re certain they didn’t learn enough, or have forgotten too much, about opportunities that exist whenever demand for something is not served by those who could supply it. Ironically, these opportunities are often found where longstanding monopolies have operated without competition. Historically, most monopolists try to violate the law of supply and demand by setting prices higher than delivered value and/or not updating their products and services.

Should the U.S. Adopt a Value-Added Tax?
Wall Street Journal
In discussions about changing the U.S. tax system, one topic almost always arises: the possibility of adopting a value-added tax. After all, most of the industrialized world uses a VAT—which is not to say they all like it. Unlike a traditional sales tax, a VAT is a levy on consumption that taxes the value added to a product or service by businesses at each point in the chain of production. Businesses along the chain collect the tax and send it to the government, which supporters say is a boon for the efficiency of revenue-collection efforts.

Need to Hire an Accountant Specializing in Small Business? Check Out Countup
Small Business Trends
Whether you are starting a business or already in the process of operating one, you’ll need to hire an accountant. If you can’t really afford a full-time accounting firm on retainer there are alternatives. Enter CountUp.io. Founded in May 2015 by Nodar Janashia, Countup is a service that links small businesses with accountants, as needed, both for full time or on a piecemeal basis. CountUp claims to be the “first” platform dedicated exclusively to connecting accountants and clients.

Six of 13 IRS-Approved Tax Preparers Fail Cybersecurity Test
Wall Street Journal
Nearly half the firms that have agreements with the Internal Revenue Service to provide online tax-preparation and filing services are failing to protect customers’ privacy and security, according to an audit released Wednesday. The audit by the nonprofit Online Trust Alliance found that six out of 13 firms, including Jackson Hewitt and Free1040TaxReturn.com, don’t provide adequate security against cybercriminals.

Implementation of Lease Accounting Standard to Put Financial Reporting Staffs Under Stress
Thomson Reuters Tax & Accounting
The FASB’s recent work includes major standards for revenue recognition and lease contracts. In addition, the accounting board plans to publish a major revision to the guidance for writing down bad loans and securities in about a month. The net result is that U.S. companies’ financial reporting staffs find themselves in the unwelcome position of undertaking three major implementation projects on overlapping schedules.

Google’s Parent Could Be Big Winner in Intel Tax Dispute
Wall Street Journal
Alphabet Inc., Google’s parent company, could gain at least $3.5 billion in new tax benefits if Intel Corp. succeeds in its international tax dispute with the Internal Revenue Service, an amount that exceeds Google’s entire 2015 tax cost. The case, which the IRS appealed to the Ninth U.S. Circuit Court of Appeals last week, is being closely watched in the tech industry and elsewhere.